An apparently seasonal weakening in the average equity position on financed residences was overshadowed by strengthening on a year-over-year basis.
As of Dec. 31, 2015, there was $9.062 trillion in U.S. mortgage debt outstanding, growing from three months previous, when it stood at $8.997 trillion.
The nation’s book of business expanded well beyond the aggregate balance of home loans outstanding at the close of 2014, when the total was $8.799 trillion.
CoreLogic Inc. reported the data in its Equity Report Fourth Quarter 2015.
On top of the outstanding residential debt, homeowners had $6.620 trillion in net equity as of the most recent date.
The positive equity position was off from $6.707 trillion in last report but up from $5.938 trillion in the year-earlier report.
Among all financed residential properties in the country, the average loan-to-value ratio as of the fourth-quarter 2015 was 57.8 percent.
Lenders’ equity position was slightly diminished compared to 57.3 percent three months prior — though the quarter-over-quarter up tick appears to be seasonal, as ratios also increased between the third and fourth quarters during both 2014 and 2013.
But equity has improved from the 59.7 percent average LTV ratio as of Dec. 31, 2014.
In Arkansas, the average LTV ratio as of year-end 2015 exceeded all other states: 71.6 percent. Oklahoma was No. 2 with 70.1 percent, then 69.5 percent in Nevada, 69.4 percent in Nebraska and 68.6 percent in Ohio.
In a far more favorable equity position was Hawaii, where LTV ratios averaged 43.6 percent — the lowest in the country. New York’s average was 46.2 percent, then California’s 50.1 percent, the District of Columbia-s 52.5 percent and Massachusetts’ 53.3 repent.
During the last three months of 2015, there were 120,000 U.S. mortgages with LTV ratios that climbed past 100 percent.
That left 4.3 million properties with negative equity, modestly more than 4.2 million in the three months ended Sept. 30, 2015.
Negative-equity count, however, has eased from 5.3 million in the quarter that closed on Dec. 31, 2014.
On the flip side, there are 46.3 million residential U.S. loans in a favorable equity position with an LTV ratio of less than 100 percent.
The positive-equity borrowers accounted for 91.5 percent of all mortgage borrowers during the fourth-quarter 2015. The share weakened from 91.7 percent three months earlier but strengthened from 89.3 percent in the final quarter of 2014.
In Texas, 98.0 percent of loans had LTV ratios less than 100 percent. Alaska and Hawaii came in second with a 97.6 percent ratio, then 97.3 percent in Montana and 97.1 percent in Colorado.
Loans with LTVs in excess of 100 percent represented a U.S. share of 8.5 percent, meagerly wider than 8.3 percent in the third quarter but substantially lower than 10.7 percent in the fourth-quarter 2014.
The share jumped to 18.7 in Nevada — the highest rate of any state. Florida followed with a 17.1 percent share, then Illinois’ 14.6 percent, Arizona’s 14.0 percent and Rhode Island’s 13.5 percent.
The aggregate dollar value of the nation’s negative equity finished last year at $311.0 billion, expanding from $305.5 billion at the end of September.
But despite the quarterly up tick in negative equity, the total has receded from the end of 2014, when the figure was $348 billion.
Among upside-down borrowers, 2.6 million have only a first lien and no home-equity loans. Another 1.7 million negative-equity properties additionally have a second lien.
Among homes valued at more than $200,000, ninety-five percent have LTV ratios under 100 percent.
For properties valued at less than $200,000, just 87 percent have positive equity.
